Resolutions are a cornerstone of decision-making in condominium governance.
They allow boards and owners to formalize decisions in compliance with the Condominium Property Act. Similarly, dispute resolution mechanisms are essential for addressing disagreements between owners, boards, and managers in a fair and transparent manner.
WHAT YOU'LL LEARN
Resolutions Under the Condominium Property Act
Appeal Mechanisms and Dispute Resolution Options
Creating Resolutions and Handling Disputes
Resolutions Under the Condominium Property Act
Purpose of Resolutions
Resolutions formalize decisions made by the condominium corporation or board and are used for specific actions as required by legislation.
Types of Resolutions
Ordinary Resolutions:
Used for routine decisions requiring a simple majority vote.
An ordinary resolution means a resolution passed by a majority of all the persons present or represented by proxy at a properly convened meeting.
Special Resolutions:
Required for significant decisions, such as amending bylaws or approving special assessments.
A special resolution means a resolution passed at a properly convened meeting by not less than 75% of all persons present or represented by proxy and entitled to vote, representing not less than 75% of the total unit factors.
Unanimous Resolutions:
Required for extraordinary decisions, such as selling a portion of common property.
A unanimous resolution means a resolution passed with 100% agreement of all unit owners.
Process for Passing Resolutions
Notice of Meeting:
A properly convened meeting must be held to pass any resolution.
The corporation must provide at least 14 days’ notice of the meeting, including the agenda and any proposed resolutions.
Voting Procedure:
Votes can be cast in person, by proxy, or electronically if allowed by the bylaws.
Recording and Implementation:
The resolution must be recorded in the meeting minutes and communicated to all owners.
Appeal Mechanisms and Dispute Resolution Options
Appeal Mechanisms Under the Condominium Property Act
The Condominium Property Act provides owners and boards with options to appeal or challenge decisions.
Appealing Bylaw Amendments or Decisions:
Owners can appeal amendments or decisions to the court.
An owner who feels aggrieved by a decision of the board may apply to the court for an order overturning the decision.
Judicial Review of Board Actions:
Courts can review board actions to ensure compliance with the Act and bylaws.
The court may make any order it considers proper, including declaring the board’s decision void if it contravenes the Act.
Dispute Resolution Options
Mediation and Arbitration:
Owners and boards are encouraged to resolve disputes through alternative dispute resolution methods.
The corporation may agree to resolve disputes through mediation or arbitration as outlined in the bylaws.
Court Applications:
If mediation fails, disputes can be resolved by filing an application in the Court of King's Bench.
The court may grant relief where an owner or board member believes that the actions of the corporation are oppressive, unfairly prejudicial, or unfairly disregard their interests.
Creating Resolutions and Handling Disputes
Drafting a Resolution
Scenario:
The board wants to amend the condominium bylaws to prohibit smoking in all common areas and unit balconies.
Task:
Draft a special resolution for this bylaw amendment. Ensure it complies with the requirements of the Condominium Property Act.
Key Steps:
State the purpose of the resolution.
Specify that it requires 75% approval of owners present or by proxy, representing 75% of unit factors.
Consult legal counsel to draft the resolution and prepare for implementation steps.
Resolving a Dispute
Scenario:
An owner claims the board acted unfairly by approving a special assessment for roof repairs without adequate consultation. The owner files a court application under the Condominium Property Act.
Task:
Create a step-by-step process for the board to respond to the court application.
Key Steps for the Learner:
Review the owner’s complaint and assess whether the board followed proper procedures.
Provide documentation of the special assessment approval process, including meeting notices, resolutions, and voting records.
Consult legal counsel and prepare for mediation or a court hearing.
